TYPICAL LEASE AGREEMENT

This instrument, made and entered into this day of _________________, (year), by and between ____________________________________________ hereinafter referred to as "Lessor" and ______________________________________________ , hereinafter referred to as "Lessee";

WITNESSETH:

Lessor hereby lets to Lessee and Lessee hires from Lessor the following described premises (hereinafter referred to as the "demised premises"):

PREMISES               SUITE XX   (      __  s.f.)

A portion of the _______  (____) floor at the Centrum Building, 319 East Madison, Springfield, Illinois containing approximately _______ square feet of gross leasable floor area. Boundaries and location of the demised premises are, outlined in red on a diagram attached hereto and made a part hereof and marked EXHIBIT 'A'. Use and occupancy by Lessee of the demised premises shall include the use of common areas and facilities as hereinafter more fully provided.

TERM

The term of this lease shall be for _____ (__) year(s) following the commencement of the term unless sooner terminated or extended as hereinafter provided. The term shall commence upon _______________, and each succeeding lease year shall commence upon the anniversary date of the first lease year. This lease shall end on _________________. In the event possession of the demised premises is not delivered to Lessee by __________________, rent will abate pro- rata until possession is delivered.

RENTAL

Lessee agrees to pay to __________________at the office of the Agent, or at such other place designated by Lessor without any prior demand therefore, and without any deduction or setoff whatsoever, as fixed minimum rent the sum of ________________________________and __/100 Dollars ($__________) in advance upon the first day of each calendar month of each lease year; such lease amount to increase (___) percent (__%) annually at the commencement of the second (2nd) lease year. The first month's rent is due and payable upon execution of this lease; receipt of which is hereby acknowledged. The initial base rent is calculated on the basis of _________ and __/100 Dollars ($____) per gross square foot per year plus any increase thereto.

IMPROVEMENT AND SIGNS BY LESSEE

Lessee may install, use and remove, from time to time, such office equipment as it desires so long as the building and its improvements are not otherwise damaged thereby. Lessee shall not make any structural alterations in or improvements to the demised premises without lessor's prior written consent. Lessee's name may be placed at such location, in such manner, style and size as Lessor shall approve.

ALTERATIONS

Lessee shall make no alterations, additions or improvements (including initial tenant improvements) to the premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld, however, Lessor may impose, as a condition of such consent, such requirements as Lessor in its sole discretion may deem reasonable or desirable including, without limiting the generality of the foregoing requirements as to the manner in which, the time or times at which, and the contractor by whom such work shall be done.

All such alteration additions, or improvements shall become the property of Lessor and shall be surrendered with the premises, as a part thereof, at the end of the term hereof, except that the Lessor may, by written notice to Lessee given at least thirty (30) days prior to the end of the term, require Lessee to remove all partitions, counters, railings and the like installed by Lessee, and to repair any damages to the premises from such removal. All trade fixtures installed by Lessee to be used in connection with Lessee's professional practice are removable by Lessee at the conclusion of the lease term, with Lessee to repair any damages caused to the premises from such removal. It is understood and agreed that any expenditures including interest thereon to comply with any federal, state, or local law or governmental regulation, shall be borne by the tenant.

REPAIRS AND DAMAGE OR DESTRUCTION

Lessor shall keep the demised premises and the building in which the same are located in good condition and repair, normal and inevitable wear and tear excepted, except that if the demised premises are damaged or destroyed by fire or other casualty to such an extent that they cannot be restored to tenantable condition within one hundred twenty (120) days from the date of such damage or destruction, then either party may terminate this lease by written notice to the other party not later than thirty (30) days after the date of such damage or destruction. Unless so terminated, Lessor shall promptly repair and restore the demised premises. During the period that the premises are rendered wholly or partially untenantable because of such fire or other casualty, unless such occurred by reason of the fault of Lessee, rent hereunder shall abate in whole or in part from the date the premises become wholly untenantable and to be partial while the premises are partially untenantable. In the case of partial abatement, the rent, from time to time, shall be an amount which bears the same ratio to the rent payable hereunder but for such occurrence as the rental value then bears to the rental value immediately before such occurrence. If Lessee, its agent, employees or guests damage the walls, doors, floors and/or floor coverings, windows, drapes or other parts of the demised premises, or the building or grounds and improvements thereon, except for normal and inevitable wear and tear, Lessee shall reimburse Lessor for actual and reasonable costs upon demand therefore, or repair such damage or replace the damaged property in a manner satisfactory to Lessor.

MUTUAL WAIVER OF SUBROGATION

Anything elsewhere herein to the contrary notwithstanding, (i) Lessee shall not be liable for any damage to the leased premises or the building in which they are contained, caused by fire or other hazards covered by fire and extended coverage insurance, standard form, regardless of the cause of the fire or other said hazards, and Lessor hereby expressly releases Lessee of and from all liability for such damages, and (ii) Lessor shall not be liable for any damage to furniture, fixtures, equipment, merchandise or other property of Lessee caused by any such fire or other said hazard, and Lessee hereby expressly releases Lessor of and from all liability for such damages.

SERVICES

Lessor will provide the services set forth in the entitled "Schedule of Services", hereto annexed as EXHIBIT 'B'and, by reference, made a part hereof. Lessee is responsible for actual cost of appropriate janitorial services. If applicable, Lessee shall provide it's own removal and disposal of all medical waste requiring special handling. Lessee shall be responsible for the actual cost of their gas and electrical usage based upon their actual consumption as separately metered. Meters for gas and electric shall be in the name of the Lessee.

SUBORDINATION

Lessee agrees that this lease and the Lessee's interest hereunder shall be subordinate to any mortgage(s), ground and underlying lease, or any method of financing or refinancing now or hereafter placed against the land, and/or demised premises and/or any and all of the building. Lessee agrees to execute and deliver whatever instruments may be required for such purposes, and in the event Lessee fails to do so within ten (10) days after request in writing, Lessee does hereby irrevocably appoint Lessor as attorney-in-fact for Lessee with full power and authority to execute and deliver such instruments for and in the name of Lessee.

However, notwithstanding any provisions of this paragraph to the contrary, lessee's rights under this lease shall survive the foreclosure of any mortgage and this lease shall continue in force provided that Lessee is not then in default of any of the covenants hereunder.

COMMON AREAS AND FACILITIES

Parking areas, driveways, entrances and exits thereto, and other facilities furnished by Lessor for the general use, in common, with other occupants of the building, their employees and customers, shall at all times by subject to the exclusive control and management of Lessor, and Lessor shall have the right from time to time to establish, modify and enforce reasonable rules and regulations with respect to all facilities and areas mentioned in this paragraph, including the right to designate parking areas for Lessee's employees and to perform such other acts in and to said areas and improvements, as in the use of good business judgement, Lessor shall determine to be advisable with a view to the improvement of the convenience and use thereof by all occupants of the building and their customers.

INSPECTION

Lessor and its licensees shall have the right to enter the demised premises at reasonable times for the purpose of inspecting or exhibiting the same or performing the covenants herein required of Lessor. Lessee shall be given reasonable notice prior to inspection, and any work required to be done shall be done in an manner least likely to disturb Lessee's professional practice.

ASSIGNMENT AND SUBLETTING

Lessee shall not, either voluntarily or by operation of law, will, assign, hypothecate or transfer this lease, or sublet the premises or any part thereof, or permit the premises or any part thereof to be occupied by anyone other than Lessee or Lessee's employees, without the prior written consent of Lessor in each instance. Lessee may assign this lease to a corporation or partnership, without Lessor's consent, provided Lessee has a controlling ownership interest in such corporation or partnership. Lessor's consent shall not be unreasonably withheld, provided the proposed assignee or sub-Lessee is reasonably satisfactory to Lessor as to credit and character and will occupy the premises for general office purposes not inconsistent with Lessor's commitments to other Tenants. Any sale, assignment, mortgage, transfer or subletting of this Lease which is not in compliance with the provisions of this Article shall be voidable and shall, at the option of Lessor, terminate this lease. The consent by Lessor to an assignment or subletting shall not be construed as relieving Lessee from obtaining the express written consent of Lessor to any further assignment or subletting or as releasing Lessee from any liability or obligation hereunder, whether or not then accrued. The Lessor reserves the right, should the Lessee request such assignment or subletting, to release the Lessee from the terms and provisions of this Lease and the Lessor shall have thirty (30) days to make such determination. Should the lessor exercise this right, then the Lease shall terminate thirty (30) days after the date notice is given to Lessee.

USE BY LESSEE

Lessee shall use the demised premises only for office use and shall carry on no other activity within said premises, the building in which the same are located or adjoining areas which may create a nuisance to Lessor or its other tenants or a hazard to the building and shall commit no waste upon or about the premises, and agrees to comply with all reasonable rules and regulations now or hereafter made by Lessor, for which Lessor has delivered a notice thereof, and uniformly applied to and for the benefit of all tenants in the building of which the demised premises are a part.

EXPIRATION OF LEASE HOLDING OVER

Upon the expiration of this lease or upon its earlier termination, Lessee shall surrender the demised premises to lessor and shall, by the date of such termination, remove all of its property from said premises and repair and restore any damage created by the installation, use or removal of such property other than normal and inevitable wear and tear. Should Lessee hold over, with Lessor's permission, after the expiration of the term herein provided, Lessee shall be deemed to be a tenant from month to month but otherwise upon the same terms and provisions as are elsewhere herein provided, and for purposes of construing the covenants of this lease, the expiration of such month to month tenancy shall then be deemed to be the expiration of the lease term.

WAIVER OF COVENANTS

Waiver of performance or observance of any covenant(s) herein in any instance shall not be taken to be a waiver of such covenant(s) as to any other instance unless expressly so agreed in writing.

DEFAULT

Should Lessee fail to pay monies herein required to be paid by it when the same becomes due or otherwise default in any of the covenants herein required of it, Lessor may give written notice of such default to Lessee, and if the same be not cured within ten (10) days thereafter (or within a reasonable but prompt time) if the same is not in payment of money and is of a kind that cannot reasonably be cured within ten (10) days, then Lessor may, by notice to Lessee, elect to re-enter and take possession of the demised premises, in such event, lessee shall do the acts specified herein which otherwise it would be obligated to do upon termination of the lease, and shall not thereafter have possession, and Lessor may, but need not, let the demised premises at such rentals as Lessor, in its absolute discretion, deems best. Lessor may, at any time thereafter, terminate the term of this lease, but unless and until such term is terminated or expires by its own limitation, all rent received by Lessor for such premises shall be applied to rents and obligations due hereunder from Lessee to Lessor. Expenses theretofore or thereafter incurred by Lessor in enforcing its rights hereunder, (including, but not limited to attorney's fees) and the remainder, if any, shall be paid over to Lessee. Lessee shall be financially liable for the performance of this lease to its _______(__) year termination.

BANKRUPTCY, ETC.

Should Lessee file voluntary petition in bankruptcy or otherwise be adjudged bankrupt or file a petition for adjustment of its indebtedness under the bankruptcy laws or make an assignment for the benefit of creditors, or have a receiver appointed for its assets generally; then Lessor may by notice to Lessee, forthwith cancel and terminate this lease; if lessee is a partnership or a corporation, the respective general partner(s) and/or corporate officer(s) shall secure this lease indebtedness personally and individually.

NOTICES

All notices under this lease shall be in writing and shall either be served upon the party to receive such notice or shall be mailed to such party by certified or registered mail with postage prepaid. Notices to Lessor to be addressed to it at:

Agent's Office
319 East Madison - Suite 3E
Springfield, Illinois 62701

or at such other address as Lessor may from time to time designate by notice to Lessee. Notices to Lessee to be addressed to ____________________at:

The Demised Premises

or at such other address as Lessee may from time to time designate by written notice to Lessor.

SUCCESSORS

This agreement and each of the covenants thereof shall be binding upon and inure to the respective parties hereto, their representatives, heirs, successors and assigns.

ENTIRE AGREEMENT

This lease and the attached exhibits set forth the entire agreement between the parties. Submission of this lease for examination does not constitute an option for the demised premises and becomes effective as a lease only on execution and delivery thereof by Lessor to Lessee.

AUTHORIZED SIGNATURES

All individuals signing this lease warrant they are duly authorized to execute the said lease on behalf of their respective parties.

TIME OF ESSENCE

Time is of essence of this agreement, unless waived by either party.


IN WITNESS WHEREOF
, the undersigned parties have executed this lease agreement as of the day and year first above written.

LESSEE: ____________________________ LESSOR: ______________________

BY:    (signature)_______________________

BY    (signature)_________________

Personally and Individually

__(signature)_________________________


EXHIBIT B

SCHEDULE OF SERVICES

Lessor will provide the following:

A. Unlimited access to the demised premises.

B. Heat and air-conditioning, plus normal maintenance and repair of all respective HVAC units as per normal office space requirements.

C. Hot and cold water to all restrooms and lavatories of the demised premises.

D. Snow removal from parking lot after a two inch snowfall.

E. Electrical current for lights, air conditioning, and power for simple office machines such as adding machines and other standard electric office equipment. Lessee may utilize electrical power for computers and/ or other office equipment requiring voltages in excess of 120v, provided the same is installed and paid for by Lessee. Lessee agrees to pay for the same in accordance with the provision as outlined in the "Services" section of the lease. Utilities of the demised premises, except for sewer, water and gas (if any) shall be separately metered and paid for by Lessee and shall be in Lessee's name.

F. Incandescent light bulbs, fluorescent light tubes and starters for all light fixtures, shall be furnished by Lessor, whether within or without the demised premises. Special lighting fixtures (if any) are not included.

G. Any additional or special HVAC, mechanical units, lighting fixtures or plumbing fixtures required by Lessee and not already located within the demised premises, shall be the responsibility of the Lessee to install, maintain and service.

H. Garbage removal expense shall be paid by Lessee, and to be allocated as a prorata percentage of occupied space. Said expense shall be paid monthly with a grace period of no more than 14 working days after receipt of statement from Lessor.

I. Carpet Cleaning: One time per year as at the sole expense of Lessee; any additional cleanings requested by Lessee, shall be at the sole expense of Lessee as well.

Lessor's obligation to provide the foregoing shall be subject only to breakdowns and shutdowns for repair or maintenance and to strikes or other labor difficulties and other causes beyond Lessor's reasonable control. There shall be an abatement of rent for any continuous period of interruption in services required to be provided by the Lessor, for which Lessor is at fault, if those services are not restored or repaired within three business days. Lessor shall not be at fault for any interruption due to causes beyond Lessor's control or acts of God.

END OF EXHIBIT B.


EXHIBIT C

TENANT ALLOWANCES

1. Lessor shall provide the perimeter walls and interior partitions of demised premises as delineated per attached Floor Plan, included in this lease as EXHIBIT 'A'. Any partition changes shall not be made without the prior written consent of Lessor, which consent shall not be unreasonably withheld by Lessor. All costs incurred due to such changes shall be the sole responsibility of Lessee.

2. Venetian blind(s) shall be furnished and installed by Lessor at office front entrance windows and exterior windows. Any other linings shall be furnished and installed by Lessee at Lessee's expense. Linings to be of uniform building standard and approved by Lessor.

3. Lessor shall provide ceiling lights to produce a minimum of 75 foot candles at desk level (32 inches). Any special lighting, other than standard two (2) foot by four (4) foot or standard two (2) foot by two (2) foot fluorescent fixtures shall be provided and installed at the sole expense of Lessee.

4. Lessor shall provide all necessary doors of a standard (3' - 0" x 7' - 0" x 1 3/4") solid wood and stained as per EXHIBIT 'A'. The cost for any non-standard door shall be provided and installed at the sole expense of Lessee.

5. Lessor shall provide all partitions smooth finished and painted with standard egg-shell white paint. Any additional wall coverings not already present or that are requested to be replaced by Lessee, shall be provided and installed at the sole expense of Lessee.

6. Any additional cabinets, vanities, or counters, other than those specified in EXHIBIT 'A' which are requested by Lessee, shall be construed as an extra to be provided and installed at the sole expense of Lessee.

7. Lessor shall provide normal heating and air conditioning units as applicable to normal office space. If any different equipment is used, tenant shall pay in advance any and all costs incurred in the acquisition and installation of such equipment.

8. Lessee may request that two parking spaces be reserved for client use in the event parking space becomes inadequate to serve all tenants.

9. Lessor shall provide carpeting or vinyl composite tile in the areas as designated in EXHIBIT 'A'. Any additional floorcoverings not already present or that are requested to be replaced by Lessee, shall be provided and installed at the sole expense of Lessee.

10. Any special equipment required for the operation of Lessee's business, not related to normal office use shall be purchased and installed at the expense of Lessee. Special utility lines and electrical hook-ups required for said equipment in or around the demises premises shall also be paid for by Lessee. Lessor's obligation shall be limited to normal office space use.

END OF EXHIBIT C.


 © 1999 centrumbuilding.com , Inc. All Rights Reserved.Legal notice.